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SMVD Poly Pack (NSE:SMVD) Operating Margin % : -10.22% (As of Sep. 2023)


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What is SMVD Poly Pack Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. SMVD Poly Pack's Operating Income for the six months ended in Sep. 2023 was ₹-23.7 Mil. SMVD Poly Pack's Revenue for the six months ended in Sep. 2023 was ₹232.3 Mil. Therefore, SMVD Poly Pack's Operating Margin % for the quarter that ended in Sep. 2023 was -10.22%.

Warning Sign:

SMVD Poly Pack Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -15.4%.

The historical rank and industry rank for SMVD Poly Pack's Operating Margin % or its related term are showing as below:

NSE:SMVD' s Operating Margin % Range Over the Past 10 Years
Min: -0.76   Med: 7.42   Max: 11.02
Current: -0.76


NSE:SMVD's Operating Margin % is ranked worse than
85.16% of 384 companies
in the Packaging & Containers industry
Industry Median: 5.995 vs NSE:SMVD: -0.76

SMVD Poly Pack's 5-Year Average Operating Margin % Growth Rate was -15.40% per year.

SMVD Poly Pack's Operating Income for the six months ended in Sep. 2023 was ₹-23.7 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2023 was ₹-5.5 Mil.


SMVD Poly Pack Operating Margin % Historical Data

The historical data trend for SMVD Poly Pack's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SMVD Poly Pack Operating Margin % Chart

SMVD Poly Pack Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.02 7.98 6.32 6.09 4.37

SMVD Poly Pack Semi-Annual Data
Mar13 Mar14 Mar15 Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.21 5.12 5.39 3.73 -10.22

Competitive Comparison of SMVD Poly Pack's Operating Margin %

For the Packaging & Containers subindustry, SMVD Poly Pack's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SMVD Poly Pack's Operating Margin % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, SMVD Poly Pack's Operating Margin % distribution charts can be found below:

* The bar in red indicates where SMVD Poly Pack's Operating Margin % falls into.



SMVD Poly Pack Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

SMVD Poly Pack's Operating Margin % for the fiscal year that ended in Mar. 2023 is calculated as

Operating Margin %=Operating Income (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=34.83 / 796.62
=4.37 %

SMVD Poly Pack's Operating Margin % for the quarter that ended in Sep. 2023 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=-23.74 / 232.305
=-10.22 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


SMVD Poly Pack  (NSE:SMVD) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


SMVD Poly Pack Operating Margin % Related Terms

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SMVD Poly Pack (NSE:SMVD) Business Description

Traded in Other Exchanges
N/A
Address
16, Strand Road, 8th Floor, Suite No.- 804B, Diamond Heritage, Kolkata, WB, IND, 700 001
SMVD Poly Pack Ltd is an Indian company engaged in manufacturing Polypropylene/ High-Density Polyethylene woven sacks bags and sacks, Leno Bags, Jumbo (Flexible Intermediate Bulk Container) FIBC Bags, and HDPE Tarpaulin. The company serves many industries such as fertilizer plants, cement plants, chemical industries, flour mills, Steel, Plastic compounds, Rice Plants, Poultry Farms, and others. It operates through two segments: Plastic products and Water Coconut.

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